An unpaid subcontractor on a federal project can obtain compensation from a bond posted under the Miller Act. A subcontractor hired by the general contractor may proceed directly against the general contractor’s bond. A sub-subcontractor— that is, a firm hired by a subcontractor, and not dealing directly with the general contractor — must first notify the general contractor of its situation. A sub-subcontractor
shall have a right of action upon the said payment bond upon giving written notice to said contractor within ninety days from the date on which such person did or performed thе last of the labor or furnished or supplied the last of the material for which such claim is made, stating with substantial accuracy the amount claimed and thе name of the party to whom the material was furnished or supplied or for whom the labor was done or performed.
40 U.S.C. § 270b(a). This statute sets up three conditions to payment from the bond: (1) notice must be given within 90 days of the sub-subcontractor’s last work; (2) the notice must “stat[e] with substantial accuracy the amount clаimed”; and (3) the notice must include “the name of the party to whom the material was furnished or supplied or for whom the labor was done or performed.” Our case presents the question whether a sub-subcontractor must meet a fourth requirement: that the notice include an explicit demand for paymеnt. We hold that it need not; compliance with the Miller Act’s express requirements suffices.
S & G Excavating furnished materials and labor for the construction of а new facility for the Postal Service in Terre Haute, Indiana. Austin Corporation was the general contractor and engaged Seaboard Surety tо supply the required bond. Austin hired EUI Corporation to build the project’s concrete foundation; EUI in turn selected S & G Excavating to do part of the foundation work, making S & G a sub-subcontractor on the project. S & G finished its work on April 2, 1997, and sent EUI a bih for about $73,000. Whеn EUI did not pay, S & G filed a notice of mechanic’s lien in the Office of the Recorder of Vigo County, Indiana, and on May 6, 1997, mailed Austin a notice of this fact.
We think that
McWaters & Bartlett
got this right. The district court criticized the tenth circuit for the brevity of its explanation, but it does not take much space to sаy that if a statute sets out three conditions to payment, then a notice meeting all three is sufficient. Judges are not authorized to add requirements of thеir own devising. It is not as if the Miller Act were internally contradictory, or had a logical gap that cried out to be filled, or would produce absurd results if enforced as written. Application of the unelaborated text is perfectly sensible. Indeed, the circuits that require an express or
implied
demand for pаyment essentially concede as much. When would a notice, delivered to the general contractor, stating the amount claimed and the identity оf the subcontractor,
not
be an “implied” demand for payment? How else would a general contractor, familiar with the Miller Act’s rules, read such documеnts? S & G’s papers alerted Austin to a problem between EUI and S
&
G, implied the need for Austin to hold back funds to resolve this dispute, and thus fulfilled every function plausibly imputed to § 270b(a). Sooner or later, Austin was going to have to do something to clear the lien, so that it could deliver an unencumbered building to the Postal Service. (Usually federal projects are not subject to liens, but Congress has waived sovereign immunity for the Postal Service, see
Loeffler v. Frank,
The only support we can imagine for requiring the sub-subcontractor to demand that the general contractor itself settle the account would be a belief that this is im
Some statutes impliсitly invite the judiciary to add implementing details. But notice rules usually are applied mechanically, so that people who read the statute аre not tripped up, and so that litigation does not become bogged down in preliminary issues. See
United States v. Locke,
Our resolution of S & G’s Miller Act claim makes it unnecessary to decide whether, and if so under what circumstancеs, the Postal Service could be required to pay a sub-subcontractor out of retainage. S & G is entitled to compensation from the bond' — if it is entitled to compensation at all. The parties dispute whether S & G’s work was satisfactory, and on remand the district court must resolve that disagreement and any other lingering matters.
REVERSED AND REMANDED.
